The tie-ups will allow customers to pickup goods ordered online at a pre-specified location that are run by the financial services provider.MUMBAI: The lines are blurring between financial services firms and ecommerce companies. Driven by the ecommerce frenzy , Yes Bank and two payments companies -Fino PayTech and Pay Point India -are working to provide warehousing facilities to help ecommerce companies overcome the last-mile connectivity hurdle.

The tie-ups will allow customers to pickup goods ordered online at a pre-specified location that are run by the financial services provider. This is the first time where financial services firms are providing real estate space to ecommerce companies to boost their businesses.

Yes Bank is expected to launch a new product -Smart Box, which is primarily a kiosk with many lockers and payment acceptance piece built into it. The customers of the ecommerce company will be offered option to pick-up their goods at any of closest kiosks run by Yes Bank.

"The Smart Box is designed for ecommerce entities to solve their logistic problems," said Ritesh Pai, senior president digital banking, Yes Bank. "It works well for nuclear families who do not have anyone at home to collect the delivery of product."

Fino PayTech has tied up with a marketplace, Snapdeal and a travel site, Yatra that would enable their customers to place orders and book tickets, respectively and collect product at any of the Fino's 5,000 Money Marts. Pay Point India has tied up with bajaao.com which sells musical instruments and grocery store faydawale.co.in.

"Only 5 per cent of purchases happen online and remaining 95 per cent are on the cash market. Till now, the ecommerce companies are fighting for the 5 per cent client and they are building the products to match their requirements.But now they have begun targeting the remaining 95 per cent market," said Ketan Doshi, managing director of Pay Point India. He estimates that 12-15 per cent of the products are returned due to last mile pain points.

A lot of ecommerce companies are not able to expand their market share because of the problems related to delivery since a lot of addresses are not verifiable, raising the cost of delivery. Further, due to rejections faced in the past, a lot of the ecommerce companies have barred some geographies with some pin codes. Finance firms earn commission on every delivery, raising productivity of their infrastructure.

"The average ticket size of orders is in the . 2,500, and close to 2,000 orders are range of ` placed each month from our Marts, 20 per cent of this demand comes from rural areas," said Rishi Gupta, COO and executive director at Fino PayTech. He said that more than 50 per cent of orders placed are for mobiles, mobile accessories and electronic devices.